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When it comes to the weekly or monthly supermarket run, the most challenging aspects often include enduring long queues at the checkout and the time-consuming billing process. Fortunately, in 2016, Amazon introduced a groundbreaking solution: the world’s first ‘Just Walk Out’ store, known as Amazon Go, located in Seattle. This innovative concept has since evolved into a chain of 43 Amazon Go stores strategically positioned in key cities like Seattle, Chicago, London, and New York as of 2023.
In this blog, we will explore the inner workings of cashierless retail stores, speculate on their future possibilities, and introduce you to the key players in the ever-evolving ‘Just Walk Out’ landscape.
How do Cashierless Stores work?
Just Walk Out technology is a remarkable achievement of machine learning and Artificial Intelligence. Customers gain entry to these AI-managed stores by simply scanning the QR codes on their smartphone apps or store cards. Within these stores, a meticulously interconnected network of cameras and highly effective sensors covers every inch, allowing them to instantly log every item a customer selects and even deduct it if it’s returned to the shelf. These cameras and sensors operate with such intelligence that shoplifting becomes nearly impossible, delivering a substantial win for retailers.
Once customers have completed their shopping, they can effortlessly exit the store. The total cost is seamlessly calculated and integrated with their chosen payment method. Shortly thereafter, customers receive an online receipt. It’s a shopping experience that’s not just easy; it’s incredibly smooth. Doesn’t that sound impressive?
Are Cashierless Stores here to stay?
You might be wondering, “Why don’t retailers invest more in enhancing the online shopping experience instead of opting for the seemingly expensive and complex cashierless stores?” The answer lies in the numbers. According to technative.io, physical stores outperform e-commerce counterparts by a staggering tenfold in terms of sales, with a significant 64% of consumers choosing to allocate their shopping budget to brick-and-mortar establishments, compared to the 36% spent online.
It’s clear that customers aren’t planning to abandon in-person shopping any time soon. As a result, enhancing the shopping experience at physical stores becomes a strategic imperative for retailers seeking to boost their sales and foot traffic. The advent of Just Walk Out technology holds immense promise in achieving this goal, making it increasingly likely that this innovative approach to retail is here to stay. It not only addresses the issue of long queues but also transforms the overall shopping experience into one that is more efficient and convenient for consumers.
Some Key Players in the Just Walk Out Landscape
Amazon, the trailblazer of cashierless technology, currently operates an impressive network of 43 Amazon Go stores. Their cutting-edge “Just Walk Out” Technology has gained the trust of 18 prominent retail outlets, as listed on their official site, with notable names including WHS Smith, Hudson, Lumen, and many others.
Dubai’s shoppers have a reason to rejoice, as Carrefour, a major retail player, unveiled its inaugural cashierless store in the Middle East in 2021, bringing the convenience of frictionless shopping to this dynamic region.
Furthermore, in a clear sign of the growing trend, Walmart, a retail giant, embarked on testing cashierless technology in 2020, with initial trials conducted in Florida. This move underscores the industry’s recognition of the potential of cashierless systems to redefine the shopping experience.
The Analytical Potential of Cashierless Stores
“I could foresee Just Walk Out becoming a “store analytics” platform that provides similar data and insights to retailers.”
–Frank Kochenasch,
President, Wunderman Thompson Commerce.
According to a compelling article on Wunderman Thompson’s website, the true potential of the Just Walk Out technology often remains underestimated. It’s not just about the convenience of skipping checkout lines; it’s about the Retail analytical Solutions it can bring to the table.
Consider this: Just Walk Out technology has the capability to meticulously record and store data on every single purchase, return, and frequently bought product in real-time. The sheer scope of this data is staggering, and its implications for the retail landscape are nothing short of revolutionary.
Imagine a world where retailers can gain deep insights into consumer behaviour, preferences, and trends with an unprecedented level of granularity. This level of data granularity can be harnessed to optimize inventory management, refine product offerings, personalize marketing strategies, and enhance overall customer experiences.
In essence, the potential is not only exciting but transformative. Just Walk Out technology has the capacity to redefine how retailers operate, adapt, and cater to the ever-evolving needs and desires of their customers. It’s not just about a checkout-free shopping experience; it’s about a data-driven retail revolution that holds the promise of reshaping the entire industry.
ClicFlyer provides Analytics Services including Promotion Planning and Flyer Promotion Services to Retailers based in the Middle East. Our tailored solutions empower retailers to unlock new levels of performance, reach, and customer engagement. To know more, reach out to us at sales@clicflyer.com
